Zinc social inventories resumed decline, down 9,700 mt on week

SHANGHAI, May 15 (SMM) – Zinc inventories in China resumed their decline this week, as demand recovered after prices slipped.

SMM data showed that social inventories of refined zinc ingots across Shanghai, Tianjin, Guangdong, Jiangsu, Zhejiang, Shandong and Hebei decreased 9,700 mt in the week ended May 15 to 227,300 mt, after an increase of 10,100 mt in the previous week. The stocks fell 10,300 mt from Monday May 11.

Shanghai and Guangdong primarily contributed to the inventory decline this week, as downstream consumers in Shanghai were keen to buy on dips and as deliveries to social warehouses in Guangdong reduced after some smelters increased their direct shipments to downstream consumers.

This week’s decline in stocks in Tianjin was moderate this week, as improved outflows in the second half of the week were offset by the arrival of deliveries from smelters as well as imports from Kazakhstan.

Compared to last Friday May 8, social inventories of refined zinc across Shanghai, Tianjin and Guangdong fell 7,300 mt, compared to an increase of 6,800 mt in the previous week.